Trust is the foundation of a good culture, with trust being the top determinant of employees' productivity. Mark McGinn from Edelman discusses their research on trust and how to build it. Trust in organizations is based on organizational ability, dependability, integrity, and purpose. The podcast explores the impact of echo chambers on trust, navigating complex issues, building trust through communication, and the influence of economic circumstances on trust and optimism.
Trust is the foundation of good company culture and is the top determinant of employees' productivity scores.
Companies are now seen as the most trusted entities, with employees expecting them to address societal problems and provide opportunities for meaningful contributions.
Building trust requires open communication, willingness to have uncomfortable conversations, and addressing issues like wealth inequality and ethical behavior.
Deep dives
The Importance of Trust in Organizations
Trust is identified as a crucial foundation for good company culture, with companies becoming increasingly important to individuals. Trust in government and other institutions is declining, while trust in companies is gaining significance. Employees are now expecting chief executives to take a stand and provide perspectives on various issues, showcasing the belief that companies hold a substantial influence in people's lives. This shift in trust reflects a disenchantment with politics and a desire for the company to be the center of control. Trust is a dynamic relationship based on ability, dependability, integrity, and purpose.
Measuring Trust and its Impact
Edelman, a strategic communications agency, has been studying trust for over 23 years. Trust is analyzed across business, media, NGOs, and government institutions. Business and employers are now the most trusted entities, as businesses are seen as competent and are increasingly expected to address societal problems. Trust is forward-looking, based on competence, consistency, integrity, and purpose. High levels of trust contribute to employee engagement, loyalty, and better market performance. Trust also depends on open and honest communication, accepting a degree of risk, and building a culture of trust within the organization.
Building Trust in a Hybrid Work Environment
In the era of hybrid work, trust plays a crucial role as employees may not have the same visible control and must rely on outcome-based productivity. Psychological safety, both in physical and virtual workspaces, is important. Loneliness and mental health concerns should be addressed to foster trust. Organizations should create inspiring physical spaces that manifest their values, while leaders should step forward on social issues. Younger generations, in particular, expect employers to address societal problems and provide opportunities for employees to contribute to meaningful solutions.
Navigating Controversial Topics and Promoting Discourse
Navigating touchy or divisive topics, such as political conflicts or social issues, requires thoughtful consideration and listening. Organizations should pause, gather information, and understand the role they can play before determining their stance. Transparency, open communication, and delivering messages in the right tone are crucial. Encouraging respectful discourse, active listening, and showcasing diverse opinions can build trust and lead to better decision-making. Respect for differing viewpoints and the willingness to have uncomfortable conversations are vital in fostering trust.
Trust in Times of Economic Downturn and Inequality
While economic growth can contribute to increased trust, building trust is primarily reliant on organizations manifesting the values they claim and demonstrating competence, dependability, integrity, and purpose. Growing wealth inequality is a significant challenge that can erode trust in institutions. Organizations must address inequality, hold individuals accountable for their behavior, and ensure consistent values across the company. Trust in institutions and leaders can weather economic downturns if organizations prioritize transparency, ethical behavior, and open communication.
We often overlook the fact that trust is the basis for all good culture. I called out some of the remarkable data on this in the Work In 2024 deck.
In Slack’s August 2023 survey of over 10,000 global office workers, trust was the top determinant of employees’ productivity scores. Employees who felt trusted were 2X as productive as those who didn’t. They were 30% more likely to put in extra effort at their jobs. If we don’t feel trusted we’re twice as likely to say we’re looking for
But what role does trust play in the modern company? And how can we build it?
Mark McGinn is a senior leader at the communications agency Edelman, he talks to me about their research into trust and how we should seek to build it.
Has our organisation replaced government? Increasingly our company is the biggest thing that we believe we can have an impact on.
Mark explains that Trust in our organisation is based on four things:
